Final answer:
In a free enterprise economy, the distribution of goods and services is controlled by supply and demand, with little government intervention, differentiating it from socialist and communist systems where government control is more prevalent. Thus, the statement "The production of goods and services is controlled by the concept of supply and demand" is the correct answer.
Step-by-step explanation:
The distribution of goods and services in a free enterprise economy is primarily controlled by the concept of supply and demand. In such an economy, also known as a market economy, production is generally dictated by the needs and wants of consumers, which signal to producers what to supply. In this system, there is significant freedom for private businesses to operate, and the government usually has minimal direct control over the market.
In contrast, socialist and communist economic systems display varying degrees of government intervention. A socialist economy often includes a mix of state ownership and private enterprise, whereas a communist economy typically involves complete government control of the production and distribution of goods and services.
Finally, the economic spectrum can be used to classify countries based on their economic systems, ranging from pure free enterprise to full communism, with many variations in between.